Purchasing shares on the Australian Securities Exchange is an example of:
A) a primary market transaction.
B) companies raising finance from another financial intermediary.
C) companies raising new finance.
D) a secondary market transaction.

Question

Quizplus · Accepted Answer

Purchasing shares on the Australian Securities Exchange involves buying shares that have already been issued by a company and are being traded between investors. This is a secondary market transaction. In contrast, a primary market transaction involves purchasing shares directly from a company when they are first issued, and this would involve companies raising new finance.

Purchasing Shares on the Australian Securities Exchange Is an Example